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Upturn AI SWOT - About
CSWC 
Capital Southwest Corporation (CSWC)
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Upturn Advisory Summary
11/12/2025: CSWC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $23.58
1 Year Target Price $23.58
| 2 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 30.2% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 11/12/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.20B USD | Price to earnings Ratio 13.02 | 1Y Target Price 23.58 |
Price to earnings Ratio 13.02 | 1Y Target Price 23.58 | ||
Volume (30-day avg) 7 | Beta 0.81 | 52 Weeks Range 16.32 - 22.93 | Updated Date 11/12/2025 |
52 Weeks Range 16.32 - 22.93 | Updated Date 11/12/2025 | ||
Dividends yield (FY) 11.16% | Basic EPS (TTM) 1.6 |
Earnings Date
Report Date 2025-11-03 | When After Market | Estimate 0.58 | Actual 0.57 |
Profitability
Profit Margin 39.79% | Operating Margin (TTM) 87.87% |
Management Effectiveness
Return on Assets (TTM) 6.45% | Return on Equity (TTM) 9.95% |
Valuation
Trailing PE 13.02 | Forward PE 9.88 | Enterprise Value 2149079296 | Price to Sales(TTM) 5.51 |
Enterprise Value 2149079296 | Price to Sales(TTM) 5.51 | ||
Enterprise Value to Revenue 16.86 | Enterprise Value to EBITDA - | Shares Outstanding 57466998 | Shares Floating 55772871 |
Shares Outstanding 57466998 | Shares Floating 55772871 | ||
Percent Insiders 3.95 | Percent Institutions 31.92 |
Upturn AI SWOT
Capital Southwest Corporation
Company Overview
History and Background
Capital Southwest Corporation, founded in 1961, is an internally managed Business Development Company (BDC) focused on providing debt and equity capital to middle market companies. Initially focused on venture capital, it has evolved to prioritize lower middle market lending.
Core Business Areas
- Middle Market Lending: Capital Southwest provides first lien senior secured debt, second lien senior secured debt and, to a lesser extent, unitranche debt and equity investments to lower middle market companies.
- Equity Investments: In addition to debt investments, Capital Southwest makes equity investments, usually in conjunction with debt investments, in its portfolio companies.
Leadership and Structure
Bowen Diehl serves as the President & CEO. The company operates with an internal management structure, which distinguishes it from externally managed BDCs.
Top Products and Market Share
Key Offerings
- First Lien Senior Secured Debt: Provides senior secured loans to lower middle market companies. Market share data is not readily available but competes with many other BDCs and private credit funds, including Ares Capital (ARCC), Golub Capital (GBDC), and Main Street Capital (MAIN). Revenue from this product constitutes a significant portion of their investment income.
- Second Lien Senior Secured Debt: Provides second lien loans to lower middle market companies, generally at higher interest rates than first lien debt. Competitors include similar BDCs and private credit funds.
- Equity Co-Investments: Provides equity co-investments alongside debt. This is used to improve yields and have direct exposure to business operations. Competitors include venture capital firms and other BDCs.
Market Dynamics
Industry Overview
The BDC industry is moderately competitive, with players ranging from large publicly traded firms to smaller private funds. The industry is influenced by interest rates, economic growth, and regulatory changes.
Positioning
Capital Southwest focuses on the lower middle market, seeking to provide capital to companies underserved by larger lenders. This niche focus can offer higher yields, but also carries higher risk. Capital Southwest has built a reputation for sound underwriting and proactive portfolio management.
Total Addressable Market (TAM)
The TAM for middle-market lending is substantial, estimated to be in the hundreds of billions of dollars annually. Capital Southwest is positioned to capture a small but profitable share of this market through its specialized focus.
Upturn SWOT Analysis
Strengths
- Internally managed structure
- Focus on lower middle market
- Strong track record of underwriting
- Diversified investment portfolio
- Active management of investments
Weaknesses
- Exposure to credit risk in the lower middle market
- Reliance on external financing
- Sensitivity to interest rate fluctuations
- Smaller scale compared to larger BDCs
- Illiquidity of private investments
Opportunities
- Growing demand for private credit
- Expansion of the investment portfolio
- Strategic acquisitions
- Increased focus on recurring revenue businesses
- Potential for higher yields in underserved markets
Threats
- Economic downturn
- Increased competition in the BDC space
- Rising interest rates
- Regulatory changes
- Credit defaults in the portfolio
Competitors and Market Share
Key Competitors
- ARCC
- GBDC
- MAIN
Competitive Landscape
Capital Southwest differentiates itself through its internal management structure and focus on the lower middle market. Its competitive advantages include a strong track record, experienced management team, and diversified investment portfolio. Disadvantages include a smaller scale compared to larger BDCs.
Major Acquisitions
No notable acquisitions.
- Year: 0
- Acquisition Price (USD millions): 0
- Strategic Rationale: Capital Southwest has not been party to any recent major acquisitions
Growth Trajectory and Initiatives
Historical Growth: Capital Southwest has achieved steady growth through strategic investments and active portfolio management.
Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by increased investment activity and favorable market conditions.
Recent Initiatives: Recent initiatives include expanding the investment portfolio, focusing on higher-yielding opportunities, and improving operational efficiency.
Summary
Capital Southwest is a well-managed BDC with a focus on the lower middle market, demonstrating consistent financial performance and shareholder returns. Its internal management structure and diversified investment portfolio are key strengths. Potential threats include economic downturns and increased competition, highlighting the need for careful underwriting and portfolio management.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Company Website
- Yahoo Finance
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be made based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Capital Southwest Corporation
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | President & CEO Mr. Michael Scott Sarner CPA, CPA | ||
Sector Financial Services | Industry Asset Management | Full time employees 30 | Website https://www.capitalsouthwest.com |
Full time employees 30 | Website https://www.capitalsouthwest.com | ||
Capital Southwest Corporation specializes in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyout situations. The investment structures are unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20 percent of total check and only makes non-control investments. The firm is industry agnostic, but it prefers to invest in industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production, with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within specialty chemicals and products, the firm seeks to invest in
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